Toronto Dominion 1Q14 Earnings Call Notes

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A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

PRetty strong Q

“The second-quarter really had a very strong quarter for TD. In fact, an outstanding quarter, earnings were up 14% year-over-year and earnings per share were up 15% to $1.9.”

Good credit quality can’t continue indefinitely but it may have legs yet

“We also benefited from broad-based improvement in credit quality in the quarter. Credit has continued to be strong and more favorable than we expected across our retail and commercial portfolios and on both sides of the border. We said before, this trend cannot continue indefinitely, but it may have a while to go.”

Mortgage market in US is slow

“the overall mortgage market is clearly challenged in the U.S. as you’ve seen some signs that that’s frightening right now in terms of application volumes through the industry and so on.”

Hopefully slowdown in personal loans was one time/seasonal

“some of this Q2 slowdown on the personal side was due to what you might think of as non-recurring factors whether that’s the weather or the seasonality or Auto and Target portfolios and I’m hoping that our loan growth will be a bit better in the next few quarters.”

Sales at Target improving

“we are already starting to see Target sales improving.”

Strength in HELOC market, maybe people not moving, borrowing to make improvements instead

“We saw some HELOC improvement in the late part of the quarter, maybe linked to this lock-in phenomenon that you hear about where people don’t want to move because they are locked into really low rates, but they are renovating and improving their current houses and so on.”

Anecdotally hearing some uptick in mortgage

“on the mortgage portfolio I don’t want to give you information that’s not sort of solidly empirically rooted. I can tell you that anecdotally you are starting to hear about a bit of an uptick.”